Loblaws Business Strategy

Business Level Strategic Analysis External Environment ostiarys Five Forces (Appendix A) The grocery store industry is a commoditized industry, which makes it difficult for grocers to declare through differentiation. Buyer power is high and thus, price leaders and operational efficiencies are critical. There is fierce competition amongst diverse grocery stores, with the main players such(prenominal) as Loblaw and A&P holding multi-banner stores in various market segments. Traditional grocery stores also lose some of their market share to do drugs stores, convenience stores and other retailers who have entered the industry. Threat of substitutes from fast-food and take- away outlets is not as prevalent, since many grocery stores have started stocking ready-to-eat meals and have food shop services available for consumers. Competitive pressures are increasing in the industry with the potential entry of Wal-Mart and new delivery methods such as the internet.

Key Success Factors of the grocery industry accept the following: ?Low cost operations; leading to press d sustain prices ?Convenient locations and large stores ?Wide product ranges; good quality ? time value added services; customer loyalty programs ?Cutting-Edge technology, both front-end and back-end face at the above factors, there are many opportunities for Canadian grocers to improve on their services such as erect integration as supplier/distributor, innovative technologies like RFID, and planetary expansion (See SWOT Analysis ? Appendix B). Internal Environment As mentioned above, the grocery industry is heavily commoditized and competitive. The Canadian market leader, Loblaw, serves a broad tar come market and integrates a low cost strategy with product and process differentiation. Through their multi-banner approach, they leverage their impression competencies across multiple businesses. Resources and Capabilities Loblaws unique tangible resource is that they own 63% of their corporate stores real estate properties, a... If you want to get a full essay, order it on our website: Orderessay

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